The lavish Canberra home Tony Abbott never moved into has cost the government nearly $120,000.

The full cost of the ill-fated lease – including termination fees and legal advice – was confirmed at a budget estimates committee hearing on Tuesday.

It has previously been revealed that during the election caretaker mode the Department of Prime Minister and Cabinet arranged a 12-month lease on an inner-south Canberra home for Abbott or Kevin Rudd to live in while the Lodge underwent repairs and renovation.

Abbott won the election and declined to live in the $3,000 a week rental property. He instead opted to stay at the Australian Federal Police college when in Canberra – a decision portrayed at the time as a cost-saving measure.

The deputy secretary of the department, Elizabeth Kelly, detailed the costs of the unoccupied home at the hearing.

They included $39,107 for rent, $65,000 for a commercial settlement to terminate the lease in November, $1,403 for a property broker to find the home in the first place and later to look for an alternative tenant, and $14,144 in legal advice on the drafting and ending of the lease.

The leader of the government in the Senate, Eric Abetz, said the 12-month fixed term lease was arranged "prior to us attaining office".

"I think most Australians will appreciate the fact the prime minister, instead of taking up these quite lavish digs, is at the police [college]," Abetz said.

The department confirmed it had approached both Abbott and Rudd during the election campaign about the property, but neither was available to inspect it.

The head of domestic policy, Rebecca Cross, said the department acknowledged "it was a decision we took at the time; with hindsight we wouldn't take that decision again".

Labor senators pursued the accommodation matter while also seeking to highlight increased funding for the prime minister's official residences of the Lodge in Canberra and Kirribilli House in Sydney.

The budget for the prime minister's official residences will increase from $1.61m in 2013-14 to $1.7m next financial year, rising to $1.77m, $1.81m and $1.86m in subsequent years.

Labor's Senate leader, Penny Wong, suggested to officials that the "end of the age of entitlement" did not apply to the prime minister's residences despite other Australians taking a hit from the budget.

Cross said she understood the increases simply maintained the previous funding in real terms.

The acting first assistant secretary, Amanda McIntyre, said the efficiency dividend did not apply to this administered expense.

Officials said the department paid for items, staff and cooking within the residences and to maintain the gardens, but the finance department was responsible for building upkeep.

Kelly said a "reduced staff" was still working for Abbott while he stayed at the AFP college, responsible for food preparation and household services such as cleaning linen and towels.

Abbott and his family moved into Kirribilli House in late March, the committee heard.